New homes sold as Alberta builder fails

May 21 2018

More than new 125 new home properties in Alberta are being sold, some at deep discounts, after major homebuilder ReidBuilt was forced into receivership last November.
ReidBuilt was founded in Edmonton more than 30 years ago and was one of Alberta’s largest homebuilders. When primary lender RBC Royal Bank forced the receivership, ReidBuilt had approximately 500 lots or homes at various stages of construction.
Court documents show that contractors are owed more than $20 million, based on liens filed against ReidBuilt.
Court appointed receiver Alvarez and Marsal Canada said it had reached proposed deals with development firms that agreed to buy a combined 136 homes and lots in Calgary, Airdrie and Edmonton.
According to court records, Genesis Land Development Corp. is buying 54 partially completed homes or vacant lots in Airdrie for $5.2 million in cash, and will forgive another $3.7 million it was owed in developer fees.
The combined value of the deal, $8.9 million, represents about 72 per cent of the properties' book value. Genesis is also buying other ReidBuilt assets.
Armour Developments Ltd. will buy 64 homes or lots in northeast Calgary for $5.7 million, about 77 per cent of their book value, the records show.
Under a proposed deal in Edmonton, Dolce Vita Homes LP will buy ReidBuilt's interest in 18 lots for the full value of the assets.